Bombardier Announces Financial Results for the Fourth Quarter and the Year Ended December 31, 2015
(Thomson Reuters ONE) -
Bombardier Inc. /
Bombardier Announces Financial Results for the Fourth Quarter and the Year Ended
December 31, 2015
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The issuer is solely responsible for the content of this announcement.
MONTREAL, QUEBEC--(Marketwired - Feb 17, 2016) - Bombardier Inc.
(TSX:BBD.A)(TSX:BBD.B)(OTCQX:BDRBF)
* Air Canada signs for up to 75 CS300 aircraft
* C Series certified and on track for entry-into-service with SWISS
* Transformation plan focused on expanding margins and cash flow
* Renewed leadership team executing turnaround
* Strong pro forma liquidity at $6.5 billion((1))
* 2016 a year of transition
(All amounts in this press release are in U.S. dollars unless otherwise
indicated. This press release contains both IFRS and non-GAAP measures. Non-GAAP
measures are defined and reconciled to the most comparable IFRS measures in the
Corporation's MD&A. See Caution regarding non-GAAP measures at the end of this
press release.)
* Revenues of $18.2 billion; backlog of $59.2 billion
* EBIT before special items((2))of $554 million
* Special items of $5.6 billion, mainly related to the completion of in-depth
reviews and de-risking of aircraft programs
* Global workforce optimization resulting in a reduction of ~7,000 positions
partially offset by hiring in growth areas
* Share consolidation to be proposed at upcoming shareholder meeting
* Management provides 2016 full year consolidated and segment guidance
((1)) Pro forma liquidity comprises the Corporation's available short-term
capital resources as at December 31, 2015, gross proceeds of the
investment from the CDPQ in Transportation received February 11, 2016 and
expected gross proceeds of the investment from the Government of Québec in
the C Series aircraft program.
((2)) See Caution regarding non-GAAP measures at the end of this press release.
Bombardier today (TSX:BBD.A)(TSX:BBD.B)(OTCQX:BDRBF) reported its financial
results for the fourth quarter and the year ended December 31, 2015.
Selected results
--------------------------------------------------------------------------------
For the fiscal years ended December
31 2015 2014
--------------------------------------------------------------------------------
Revenues $ 18,172 $ 20,111
EBIT margin (26.6 )% (2.8 )%
EBIT margin before special
items((1)) 3.0 % 4.6 %
EBITDA margin before special
items((1)) 5.5 % 6.7 %
Diluted EPS (in dollars) $ (2.58 ) $ (0.74 )
Adjusted EPS (in dollars)((1)) $ 0.14 $ 0.35
Free cash flow usage((1)) $ (1,842 ) $ (1,117 )
--------------------------------------------------------------------------------
As at December 31 2015 2014
--------------------------------------------------------------------------------
Available short-term capital $ $
resources((2)) 4,014 3,846
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
For the fourth quarters ended
December 31 2015 2014
--------------------------------------------------------------------------------
Revenues $ 5,017 $ 5,960
EBIT margin (13.1 )% (20.2 )
EBIT margin before special
items((1)) 0.3 % 2.6 %
EBITDA margin before special
items((1)) 2.8 % 4.6 %
Diluted EPS (in dollars) $ (0.31 ) $ (0.92 )
Adjusted EPS (in dollars)((1)) $ - $ 0.04
Free cash flow((1)) $ 527 $ 590
--------------------------------------------------------------------------------
((1)) See Caution regarding non-GAAP measures at the end of this press release.
((2)) Defined as cash and cash equivalents plus the amount available under
revolving credit facilities.
"We are turning Bombardier around to make this great company stronger and more
competitive," said Alain Bellemare, President and Chief Executive Officer. "Over
the past year, we renewed our leadership team and developed a clear plan to
significantly improve our performance. We de-risked major development programs
and stabilized the company, securing our liquidity position and taking a series
of actions to rebuild margins."
"With the certification of the CS100 aircraft, we also reached the last key
milestone before the entry-into-service of the C Series, while ramping up to
full production. And today, with the signing of Air Canada for the leading-edge
CS300 aircraft, we add a major international airline customer based in North
America to complement our orders in both Europe and Asia. Air Canada's
commitment is a strong endorsement of this outstanding aircraft. It will create
significant value for Air Canada and its customers and will become a catalyst
for future orders in North America and around the world," added Mr. Bellemare.
For 2016, the company expects to generate between $16.5 billion and $17.5
billion in revenues, with EBIT margin improvements across Transportation,
Business Aircraft and Aerostructures, while Commercial Aircraft ramps up the C
Series program. EBIT is expected to be within a range of $200 million to $400
million, while free cash flow usage materially improves, at $1.0 billion to $1.3
billion for the year.
+------------------------------------------------------------------------------+
|Guidance for 2016((1)) |
+--------------+------------------+--------------------------------------------+
|Business |Growth and |Revenues greater than $5.0 billion. |
|Aircraft |deliveries |Approximately 150 deliveries. |
| +------------------+--------------------------------------------+
| |Profitability((2))|EBIT margin of approximately 6%. |
+--------------+------------------+--------------------------------------------+
|Commercial |Growth and |Revenues of approximately $3.0 billion. |
|Aircraft |deliveries |Approximately 95 deliveries. |
| +------------------+--------------------------------------------+
| |Profitability((2))|Negative EBIT of approximately $550 million,|
| | |mainly due to the dilutive impact of the |
| | |initial years of production of the C Series |
| | |aircraft program.((3)) |
+--------------+------------------+--------------------------------------------+
|Aerostructures|Growth |Revenues are expected to remain at |
|and | |approximately $1.8 billion, mainly from |
|Engineering | |intersegment contracts with Business |
|Services | |Aircraft and Commercial Aircraft. |
| +------------------+--------------------------------------------+
| |Profitability((2))|EBIT margin of approximately 7.5%. |
+--------------+------------------+--------------------------------------------+
|Transportation|Growth |Revenues of approximately $8.5 billion, |
| | |based on the assumption that foreign |
| | |exchange rates will remain stable in 2016 |
| | |compared to 2015. |
| +------------------+--------------------------------------------+
| |Profitability((2))|EBIT margin above 6%. |
+--------------+------------------+--------------------------------------------+
|Consolidated |Growth |Revenues in the range of $16.5 billion to |
| | |$17.5 billion. |
| +------------------+--------------------------------------------+
| |Profitability((2))|EBIT in the range of $200 million to $400 |
| | |million. |
| +------------------+--------------------------------------------+
| |Liquidity |Free cash flow usage((4) )in the range of |
| | |$1.0 billion to $1.3 billion. |
+--------------+------------------+--------------------------------------------+
((1)) See each reportable segment's Guidance and forward-looking statements
section and forward-looking statements disclaimer hereafter for details
regarding the assumptions on which the guidance is based.
((2)) Profitability guidance is based on EBIT before special items. Refer to the
Non-GAAP financial measures section for a definition of this metric.
((3)) Early production units in a new program incur higher costs and generally
have lower selling prices than units produced later in the program's life
cycle.
((4)) Refer to the Non-GAAP financial measures section for a definition of this
metric.
Air Canada signs for up to 75 C Series aircraft
Bombardier and Air Canada announced today that the parties have signed a Letter
of Intent (LOI) for the sale and purchase of 45 CS300 aircraft with options for
an additional 30 CS300 aircraft, including conversion rights to the CS100
aircraft. Upon execution of a firm purchase agreement, Air Canada will become
the first mainline, international network carrier based in North America for the
C Series family of aircraft. The all-new aircraft will start delivering in 2019.
Based on the list price of the CS300 aircraft, a firm order would be valued at
approximately $3.8 billion. With this significant agreement, Bombardier has now
received orders and commitments for a total of 678 C Series aircraft.
Global workforce optimization
Bombardier announced today that it will take steps to optimize its workforce
with a combination of a manpower reduction and strategic hiring throughout 2016
and 2017. As the company evolves over the next two years, its global workforce
will be reduced by a targeted 7,000 production and non-production employees,
including 2,000 contractors. This reduction will be partially offset by hiring
in certain growth areas, notably to support the ramp-up of strategic programs
and projects worldwide, such as the C Series. These adjustments will enable
Bombardier to resize its organization in line with current business needs and to
increase its competitiveness.
The decision to optimize the organization is based on an in-depth review of the
company carried out over the past year:
* As previously communicated, production rates have been modified for some
aircraft models due to macroeconomic conditions. As a result, Bombardier is
adapting its workforce to meet market demand.
* Major aerospace development programs and projects at Transportation, which
mobilized numerous employees, are ramping down as expected. Bombardier is
resizing its manpower to match future workloads.
* Finally, the company's transformation plan is taking hold, driving
productivity across the entire organization.
In parallel, Bombardier intends to hire in certain growth areas:
* The C Series aircraft program continues to ramp up its production rate and
to win orders, generating new jobs at the Bombardier facility in Mirabel,
Québec. The number of employees directly assigned to the C Series program
has increased in the past few months, reaching a total of 3,450 employees
worldwide, and is expected to keep growing over the next few years.
* In addition, Bombardier Transportation's impressive $30.4-billion backlog
includes certain large orders which will mobilize additional manpower in
regions where it has a limited presence.
"Throughout 2016 and 2017, we will adapt our global manpower to current market
conditions, while hiring to support growing segments, such as the C Series,"
said Mr. Bellemare. "These adjustments are always difficult. They are important
to ensure that, with our 64,000 employees worldwide, we continue to create
superior value for our customers, be more competitive, and deliver improved
financial performance," he added.
Impacted positions are mostly based in Canada and Europe, where the company's
aerospace and rail transportation activities are concentrated. Bombardier will
support affected employees and will provide them with resources to help them
manage through their transition.
The reductions will begin in the coming weeks and will be implemented over a
period of two years. Throughout 2016, on a full year basis, Bombardier expects
to record $250 million to $300 million in restructuring charges that will be
reported as special items when accrued.
The table below presents an overview of targeted workforce reductions by
business segment.
+---------------------------------------------------------------------------+
| Business segment Targeted workforce reduction |
+---------------------------------------------------------------------------+
| Aerostructures and Engineering Services 2,500 |
+---------------------------------------------------------------------------+
| Business Aircraft 500 |
+---------------------------------------------------------------------------+
| Commercial Aircraft 0 |
+---------------------------------------------------------------------------+
| Product Development Engineering, Aerospace 800 |
+---------------------------------------------------------------------------+
| Transportation 3,200 |
+---------------------------------------------------------------------------+
| Total 7,000 |
+---------------------------------------------------------------------------+
"Bombardier is in a better place today and we are on the path to greater
profitability. We are engaged in a rigorous process that will increase our
earnings power and cash flow generation over the next five years. And with
today's landmark commitment from Air Canada for up to 75 CS300 aircraft, we are
building positive momentum to successfully compete. The C Series is the best
aircraft in the 100- to 150-seat class segment. Its innovative all-new design
makes it the lowest operating costs, greatest cabin comfort and the most
environmentally-friendly aircraft in the industry. We now have a clear plan in
place and are applying disciplined execution to make Bombardier stronger,"
concluded Mr. Bellemare.
Share consolidation
Bombardier also announced today that it plans to present a proposal to its
shareholders for a consolidation (also known as a "reverse stock split") of its
issued and unissued Class A shares (multiple voting) (the "Class A shares"), and
Class B shares (subordinate voting) (the "Class B subordinate voting shares"),
at its annual and special meeting planned for spring 2016 (the "Share
Consolidation"). The consolidation ratio will be selected by Bombardier's Board
of Directors from within a range of ratios, subject to shareholder approval,
which would be expected, at that time, to result in an initial post-
consolidation share price in the range of $10 Cdn to $20 Cdn per Class A share
or Class B subordinate voting share. Assuming receipt of shareholder and Toronto
Stock Exchange approvals, the Share Consolidation, if any, would be completed at
such time as the Board of Directors shall deem appropriate.
Bombardier believes that a higher share price resulting from the proposed
consolidation would heighten the interest of the financial community as it would
broaden the pool of investors that may consider or may be able to invest in
Bombardier.
Implementation of the Share Consolidation is subject to a number of conditions,
including but not limited to, Toronto Stock Exchange and shareholder approval,
and subject to the Board of Directors' authority, notwithstanding approval of
the Share Consolidation by shareholders, to determine in its discretion not to
proceed with the Share Consolidation, without further approval or action by, or
prior notice to, shareholders. There can be no assurance that the Share
Consolidation will be implemented as proposed or at all, or as to the timing
thereof, or that the Share Consolidation will result in the contemplated initial
post-consolidation share price of Class A shares or Class B subordinate voting
shares.
SEGMENTED RESULTS AND HIGHLIGHTS
Business Aircraft
--------------------------------------------------------------------------------
For the fiscal years ended December 2015 2014
31
--------------------------------------------------------------------------------
Revenues $ 6,996 $ 7,200
Aircraft deliveries (in units) 199 204
Net orders (in units)((1)) (24 ) 129
Book-to-bill ratio((2)) nmf 0.6
EBIT $ (1,252 ) $ (903 )
EBIT margin (17.9 )% (12.5 )%
EBIT before special items((3)) $ 308 $ 499
EBIT margin before special % %
items((3)) 4.4 6.9
EBITDA before special items((3)) $ 492 $ 648
EBITDA margin before special % %
items((3)) 7.0 9.0
Net additions to PP&E and $ $
intangible assets 722 1,019
--------------------------------------------------------------------------------
As at December 31 2015 2014
--------------------------------------------------------------------------------
Order backlog (in billions of $ $
dollars) 17.2 24.0
--------------------------------------------------------------------------------
nmf: information not meaningful
((1)) The net orders for 2015 and 2014 include 143 cancellations and 52
cancellations, respectively.
((2)) Ratio of net orders received over aircraft deliveries, in units.
((3)) See Caution regarding non-GAAP measures at the end of this press release.
* Effective June 15, 2015, David M. Coleal became President, Bombardier
Business Aircraft.
* Following an in-depth review to validate all aspects of the Global 7000 and
Global 8000 aircraft program, the entry-into-service of the Global 7000
aircraft is now expected to occur in the second half of 2018.
* On October 28, 2015, due to the lack of sales following the prolonged market
weakness, Bombardier cancelled the Learjet 85 program. As a result, the
company recorded a charge of $1.2 billion in special items in the third
quarter of 2015, mainly related to the impairment of the remaining Learjet
85 aircraft program development. The company remains committed to the
Learjet family of aircraft.
* On November 2015, the Challenger 650 aircraft entered into service.
* Bombardier continues to restructure and enhance Business Aircraft's business
model to improve long-term profitability. Subsequent to the end of the
fiscal year, on January 13, 2016, the company announced that it has
completed initiatives to increase the number of direct-to-market channels,
including termination of select sales representative and distribution
agreements, and to restructure customer commercial agreements, resulting in
the cancellation of 24 firm orders, valued at approximately $1.75 billion
based on 2015 list prices, with an additional cancellation of 30 optional
orders. Mainly as a result of these completed initiatives, in the fourth
quarter of 2015, Bombardier recorded $327 million in special items.
Commercial Aircraft
-------------------------------------------------------------------
For the fiscal years ended December 31 2015 2014
-------------------------------------------------------------------
Revenues $ 2,395 $ 2,740
Aircraft deliveries (in units) 76 86
Net orders (in units) 51 153
Book-to-bill ratio((1)) 0.7 1.8
EBIT $ (3,970 ) $ (123 )
EBIT margin nmf (4.5 )%
EBIT before special items((2)) $ (170 ) $ (107 )
EBIT margin before special items((2)) (7.1 )% (3.9 )%
EBITDA before special items((2)) $ (66 ) $ (5 )
EBITDA margin before special items((2)) (2.8 )% (0.2 )%
Net additions to PP&E and intangible $ $
assets 963 801
-------------------------------------------------------------------
As at December 31 2015 2014
-------------------------------------------------------------------
Order backlog (in billions of dollars) $ 11.5 $ 12.5
-------------------------------------------------------------------
nmf: information not meaningful
((1)) Ratio of net orders received over aircraft deliveries, in
units.
((2)) See Caution regarding non-GAAP measures at the end of this
press release.
* Effective April 9, 2015, Fred Cromer became President, Bombardier Commercial
Aircraft.
* In October 2015, Bombardier Inc. entered into a memorandum of understanding
with the Government of Québec, who will invest $1.0 billion in the C Series
aircraft program in return for a 49.5% equity stake in a newly created
limited partnership to which Bombardier would transfer the assets,
liabilities and obligation of the C Series aircraft program. This newly
created limited partnership will carry on the operations related to the C
Series aircraft program and will be consolidated in the Company's financial
results. The execution of the definitive agreements and the disbursement of
the investment are expected to take place in the second quarter of 2016,
subject to the closing conditions. The Government of Québec's interest in
the partnership will be redeemable at Bombardier's option, in certain
circumstances.
* Following the completion of an in-depth review of the C Series aircraft
program as well as discussions with the Government of Québec, which resulted
in the memorandum of understanding, the Company recorded a charge of $3.2
billion in special items in the third quarter of 2015, mainly related to the
impairment of aerospace program tooling. The Company continues to believe
that the C Series aircraft program meets specific market requirements and
that it has long-term market potential.
* On December 17, 2015, the CS100 aircraft was awarded type certification from
Transport Canada, paving the way for the delivery and entry-into-service of
the aircraft with first operator Swiss International Air Lines (SWISS)
expected in the second quarter of 2016.
Aerostructures and Engineering Services
-------------------------------------------------------------------
For the fiscal years ended December 31 2015 2014
-------------------------------------------------------------------
Revenues $ 1,797 $ 1,919
External order intake 474 556
External book-to-bill ratio((1)) 0.9 1.0
EBIT $ 105 $ 83
EBIT margin 5.8 % 4.3 %
EBIT before special items((2)) $ 104 $ 97
EBIT margin before special items((2)) 5.8 % 5.1 %
EBITDA before special items((2)) $ 154 $ 146
EBITDA margin before special items((2)) 8.6 % 7.6 %
Net additions to PP&E and intangible $ $
assets 26 38
-------------------------------------------------------------------
As at December 31 2015 2014
-------------------------------------------------------------------
External order backlog $ 80 $ 113
-------------------------------------------------------------------
((1)) Ratio of new external orders over external revenues.
((2)) See Caution regarding non-GAAP measures at the end of this
press release.
Bombardier Transportation
-------------------------------------------------------------------
For the fiscal years ended December 31 2015 2014
-------------------------------------------------------------------
Revenues $ 8,281 $ 9,619
Order intake (in billions of dollars) $ 8.8 $ 12.6
Book-to-bill ratio((1)) 1.1 1.3
EBIT $ 465 $ 469
EBIT margin 5.6 % 4.9 %
EBIT before special items((2)) $ 465 $ 526
EBIT margin before special items((2)) 5.6 % 5.5 %
EBITDA before special items((2)) $ 564 $ 641
EBITDA margin before special items((2)) 6.8 % 6.7 %
Net additions to PP&E and intangible $ $
assets 155 107
-------------------------------------------------------------------
As at December 31 2015 2014
-------------------------------------------------------------------
Order backlog (in billions of dollars) $ 30.4 $ 32.5
-------------------------------------------------------------------
((1)) Ratio of new orders over revenues.
((2)) See Caution regarding non-GAAP measures at the end of this
press release.
* On April 14, 2015, the V300ZEFIRO Italy very high-speed train received
homologation and successfully completed its maiden trip from Milan to Rome
before entering commercial service in June 2015.
* In November 2015, Bombardier Inc. entered into a definitive agreement with
the Caisse de dépôt et placement du Québec (CDPQ) for a $1.5-billion
convertible share investment in Bombardier Transportation's newly-created
holding company, Bombardier Transportation (Investment) UK Ltd (BT Holdco).
The shares will be convertible into a 30% common share equity stake of BT
Holdco, subject to annual adjustments related to performance. BT Holdco will
continue to be controlled by Bombardier Inc. and consolidated in its
financial results. The investment was completed on February 11, 2016.
* Bombardier Transportation recorded a strong order intake of $8.8 billion
across all product segments and geographic regions, leading to a book-to-
bill ratio of 1.1 for the fiscal year and bringing the backlog to $30.4
billion at year end.
* During the year, Bombardier Transportation strengthened its position in the
Chinese market:
* It signed an agreement with the New United Group (NUG) to establish a
joint venture for signalling and rail control in China.
* Bombardier-Sifang Transportation, a Chinese entity in which Bombardier
holds a 50 percent interest, was awarded contracts with China Railway
Corp. (CRC) to supply 15 CRH380D very high-speed trains valued at
approximately $381 million and 80 CRH1E-250 high-speed new generation
sleeper train cars valued at approximately $165 million, and has
delivered the first very high speed train to its customer, Shanghai
Railway Bureau.
* Bombardier Transporation's Chinese joint venture, CSR Puzhen Bombardier
Transportation Systems Ltd., won its first contract for an INNOVIA APM
300 automated people mover (APM) to be delivered to its customer
Shanghai Shentong Metro Co. Ltd.
* On December 9, 2015, Laurent Troger became President, Bombardier
Transportation.
Reconciliation of segment to consolidated results
--------------------------------------------------------------------------------
Fourth quarters Fiscal years
ended December 31 ended December 31
--------------------------------------------------------------------------------
2015 2014(1) 2015 2014(1)
--------------------------------------------------------------------------------
Revenues
Business Aircraft $ 2,086 $ 2,462 $ 6,996 $ 7,200
Commercial Aircraft 644 720 2,395 2,740
Aerostructures and
Engineering Services 443 522 1,797 1,919
Transportation 2,164 2,636 8,281 9,619
Corporate and
Elimination (320 ) (380 ) (1,297 ) (1,367 )
--------------------------------------------------------------------------------
Consolidated $ 5,017 $ 5,960 $ 18,172 $ 20,111
--------------------------------------------------------------------------------
EBIT before special
items((2))
Business Aircraft $ 28 $ 174 $ 308 $ 499
Commercial Aircraft (87 ) (140 ) (170 ) (107 )
Aerostructures and
Engineering Services (9 ) 22 104 97
Transportation 123 111 465 526
Corporate and
Elimination (39 ) (11 ) (153 ) (92 )
--------------------------------------------------------------------------------
$ 16 $ 156 $ 554 $ 923
--------------------------------------------------------------------------------
Special Items
Business Aircraft $ 380 $ 1,357 $ 1,560 $ 1,402
Commercial Aircraft 240 - 3,800 16
Aerostructures and
Engineering Services - - (1 ) 14
Transportation - - - 57
Corporate and
Elimination 53 - 33 -
--------------------------------------------------------------------------------
$ 673 $ 1,357 $ 5,392 $ 1,489
--------------------------------------------------------------------------------
EBIT
Business Aircraft $ (352 ) $ (1,183 ) $ (1,252 ) $ (903 )
Commercial Aircraft (327 ) (140 ) (3,970 ) (123 )
Aerostructures and
Engineering Services (9 ) 22 105 83
Transportation 123 111 465 469
Corporate and
Elimination (92 ) (11 ) (186 ) (92 )
--------------------------------------------------------------------------------
$ (657 ) $ (1,201 ) $ (4,838 ) $ (566 )
--------------------------------------------------------------------------------
Supplemental
information((2))
Adjusted net income $ 9 $ 83 $ 326 $ 648
Adjusted EPS $ - $ 0.04 $ 0.14 $ 0.35
Free cash flow usage $ 527 $ 590 $ (1,842 ) $ (1,117 )
--------------------------------------------------------------------------------
((1)) Financial results for the fourth quarter and fiscal year ended December
31, 2014 have been reclassified to conform with current year
presentation. See the MD&A for the fiscal year ended December 31, 2015
for further information.
((2)) See Caution regarding non-GAAP measures at the end of this press release.
Bombardier Inc. uses its website as a channel of distribution for material
company information. Financial and other material information regarding
Bombardier Inc. is routinely posted on its website and accessible at
bombardier.com. Investors are hereby notified information about regular
dividends declared and paid by Bombardier is only made available through its
website, unless otherwise required by applicable securities laws.
About Bombardier
Bombardier is the world's largest manufacturer of both planes and trains.
Looking far ahead while delivering today, Bombardier is evolving mobility
worldwide by answering the call for more efficient, sustainable and enjoyable
transportation everywhere. Our vehicles, services and, most of all, our
employees are what make us a global leader in transportation.
Bombardier is headquartered in Montréal, Canada. Our shares are traded on the
Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability
North America Index. In the fiscal year ended December 31, 2015, we posted
revenues of $18.2 billion. News and information are available at bombardier.com
or follow us on Twitter (at)Bombardier.
Bombardier, Challenger, Challenger 650, CS100, CS300, C Series, Global, Global
7000, Global 8000, INNOVIA, Learjet, Learjet 85 and The Evolution of Mobility
are trademarks of Bombardier Inc. or its subsidiaries.
Readers are strongly advised to view a more detailed discussion of our results
by segment in our Management's Discussion and Analysis and consolidated
financial statements which are posted on our website at ir.bombardier.com.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements, which may involve, but
are not limited to: statements with respect to the Corporation's objectives,
guidance, targets, goals, priorities, market and strategies, financial position,
beliefs, prospects, plans, expectations, anticipations, estimates and
intentions; general economic and business outlook, prospects and trends of an
industry; expected growth in demand for products and services; product
development, including projected design, characteristics, capacity or
performance; expected or scheduled entry-into-service of products and services,
orders, deliveries, testing, lead times, certifications and project execution in
general; competitive position; the expected impact of the legislative and
regulatory environment and legal proceedings on the Corporation's business and
operations; available liquidities and ongoing review of strategic and financial
alternatives; the completion of the investment by the Government of Québec in
the C Series aircraft program (the C Series Investment) and the use of proceeds
therefrom; the use of proceeds from the private placement of a minority stake in
Transportation to the CDPQ (the CDPQ Investment and, with the C Series
Investment, the Investments); the effects of the Investments on the range of
options available to us, including regarding our participation in future
industry consolidation; the capital and governance structure of the
Transportation segment following the CDPQ Investment, and of the Commercial
Aircraft segment following the C Series Investment; the impact and expected
benefits of the Investments on our operations, infrastructure, opportunities,
financial condition, access to capital and overall strategy; and the impact of
the sale of equity on our balance sheet and liquidity position. The
implementation of the Share Consolidation is subject to a number of conditions,
including but not limited to, Toronto Stock Exchange approval and shareholder
approval, and subject to the Board of Directors' authority, notwithstanding
approval of the Share Consolidation by shareholders, to determine in its
discretion not to proceed with the Share Consolidation, without further approval
or action by, or prior notice to, shareholders. There can be no assurance that
the Share Consolidation will be implemented as proposed or at all, or as to the
timing thereof, or that the Share Consolidation will result in the contemplated
initial post-consolidation share price of Class A Shares or Class B Subordinate
Voting Shares.
Forward-looking statements can generally be identified by the use of forward-
looking terminology such as "may", "will", "expect", "intend", "anticipate",
"plan", "foresee", "believe", "continue", "maintain" or "align", the negative of
these terms, variations of them or similar terminology. By their nature,
forward-looking statements require management to make assumptions and are
subject to important known and unknown risks and uncertainties, which may cause
actual results in future periods to differ materially from forecast results.
While management considers their assumptions to be reasonable and appropriate
based on information currently available, there is risk that they may not be
accurate.
Certain factors that could cause actual results to differ materially from those
anticipated in the forward-looking statements include, but are not limited to,
risks associated with general economic conditions, risks associated with our
business environment (such as risks associated with the financial condition of
the airline industry, of business aircraft customers, and of the rail industry;
trade policy; increased competition; political instability and force majeure),
operational risks (such as risks related to developing new products and
services; development of new business; the certification and homologation of
products and services; fixed-price commitments and production and project
execution; pressures on cash flows based on project-cycle fluctuations and
seasonality; our ability to successfully implement our strategy and
transformation plan; doing business with partners; product performance warranty
and casualty claim losses; regulatory and legal proceedings; the environment;
dependence on certain customers and suppliers; human resources; reliance on
information systems; reliance on and protection of intellectual property rights;
and adequacy of insurance coverage), financing risks (such as risks related to
liquidity and access to capital markets, retirement benefit plan risk, exposure
to credit risk, certain restrictive debt covenants, financing support provided
for the benefit of certain customers and reliance on government support), market
risks (such as risks related to foreign currency fluctuations, changing interest
rates, decreases in residual values, increases in commodity prices and inflation
rate fluctuations). For more details, see the Risks and uncertainties section in
Other in the Management's Discussion and Analysis (MD&A) of the Corporation's
financial report for the fiscal year ended December 31, 2015. Certain important
assumptions by management in making forward-looking statements include, but are
not limited to: that ongoing due diligence investigations by the Government of
Québec will not identify any materially adverse facts or circumstances; the
satisfaction of all conditions to the completion of the C Series Investment,
including the receipt of any required third party, regulatory and other
approvals. For additional information with respect to the assumptions underlying
the forward-looking statements made in this press release, refer to the Guidance
and forward-looking statements sections in the Corporation's financial report
for the fiscal year ended December 31, 2015. There can be no assurance that the
C Series Investment will be undertaken or completed in whole or in part, or of
the timing, size and proceeds of any such transaction, which will depend on a
number of factors.
Readers are cautioned that the foregoing list of factors that may affect future
growth, results and performance is not exhaustive and undue reliance should not
be placed on forward-looking statements. The forward-looking statements set
forth herein reflect management's expectations as at the date of this press
release and are subject to change after such date. Unless otherwise required by
applicable securities laws, the Corporation expressly disclaims any intention,
and assumes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. The forward-
looking statements contained in this press release are expressly qualified by
this cautionary statement.
CAUTION REGARDING NON-GAAP MEASURES
This press release is based on reported earnings in accordance with
International Financial Reporting Standards (IFRS). Reference to generally
accepted accounting principles (GAAP) means IFRS, unless indicated otherwise.
This press release is also based on non- GAAP financial measures including
EBITDA, EBIT before special items and EBITDA before special items, adjusted net
income, adjusted earnings per share and free cash flow. These non-GAAP measures
are mainly derived from the consolidated financial statements but do not have
standardized meanings prescribed by IFRS; therefore, others using these terms
may define them differently. Management believes that providing certain non-GAAP
performance measures, in addition to IFRS measures, provides users of our
consolidated financial statements with enhanced understanding of results and
related trends and increases the transparency and clarity of the core results of
our business. Refer to the Non-GAAP financial measures and Liquidity and capital
resources sections in Overview and each reporting segments' Analysis of results
sections in the Corporation's MD&A for definitions of these metrics and
reconciliations to the most comparable IFRS measures.
Contact Information
Bombardier Inc.
Isabelle Rondeau
Director, Communications
+514 861 9481
Bombardier Inc.
Patrick Ghoche
Vice President, Investor Relations
+514 861 5727
www.bombardier.com
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Bombardier Inc. via GlobeNewswire
[HUG#1986801]
Unternehmensinformation / Kurzprofil:
Datum: 17.02.2016 - 12:56 Uhr
Sprache: Deutsch
News-ID 451307
Anzahl Zeichen: 47694
contact information:
Town:
West Montreal, QC
Kategorie:
Business News
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"Bombardier Announces Financial Results for the Fourth Quarter and the Year Ended December 31, 2015"
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